|Adjustments||Not Seasonally Adjusted|
As an independent central bank, the Swiss National Bank (SNB) pursues a monetary policy that serves the interests of the country as a whole (cf. art. 99 para. 2 of the Federal Constitution of the Swiss Confederation (SR 101)). It also regulates money circulation, facilitates payment transactions and advises the federal government on currency matters.
When the Federal Constitution was revised in 1891, the Confederation was granted the exclusive right to issue banknotes. In 1905 the SNB was established, commencing operations two years later, and the right to issue banknotes was transferred to the SNB. The SNB is a special-statute joint-stock company whose purpose, activity and organisation are governed by the National Bank Act. The cantons, the cantonal banks and other public law corporations and institutions hold more than half of the SNB share capital. The Swiss Confederation does not hold any share capital.
The revised Federal Act on the Swiss National Bank (National Bank Act, NBA) has been in force since May 2004. The revised version includes a detailed description of the SNB’s constitutional mandate. Pursuant to art. 5 of the NBA (SR 951.11), the SNB pursues a monetary policy serving the interests of the country as a whole. It is required to ensure price stability and take due account of economic developments. In this respect it has the following tasks: to provide the Swiss franc money market with liquidity, to ensure the supply and distribution of cash, to facilitate and secure the operation of cashless payment systems, to manage the currency reserves and contribute to the stability of the financial system. It also participates in international cooperative organisations in the monetary field and provides banking services to the Swiss Confederation.
The SNB’s statistical activities are now also covered by the revised National Bank Act (art. 14 et seq. NBA, in particular). Under these provisions, the SNB may collect all the statistical data it requires for fulfilling its mandate. The SNB has specified the requisite surveys in the Ordinance to the Federal Act on the Swiss National Bank (National Bank Ordinance, NBO, SR 951.131).
Core inflation rates
The core inflation rate is calculated to obtain a more accurate measure of long-term price developments by excluding certain goods or categories of goods from the Swiss consumer price index (CPI). This adjustment is particularly necessary because the inflation rate as measured by the CPI is subject to numerous short-term influences which may make it difficult to have a clear view of general, long-term price developments.
The SNB computes the core inflation rate by excluding, for any given period, those 15% of goods with the highest and those 15% with the lowest annual rate of change from the CPI basket of goods. In other words, it cuts off the tails at both ends of the distribution spectrum of price changes observed at a particular point in time. This is referred to as the trimmed mean method. By contrast, the two core inflation rates calculated by the SFSO always exclude the same goods from the basket. In the case of core inflation 1, these are food, beverages, tobacco, seasonal products, energy and fuel, because their prices are considered to be particularly volatile. Core inflation 1 comprises 78% of the original CPI basket of goods. Core inflation 2 additionally factors out products with administered prices, and covers 63% of the CPI goods basket.
The data are subject to revision.